Real Estate

The Trend Away From Houses

Screen Shot 2015-01-06 at 1.08.30 PMCondos in 2015 Are Going Up Up Up

To make a prediction for Canada’s crazy housing market would be, well, crazy, but like RE/MAX Condos Plus, some agents believe it’s safe to say high-rise living will continue to post strong gains in major markets – especially for larger family-friendly units.
 
“I think this will be another solid year for [condos],” says Matt Elkind, an agent with The Condo Store in Toronto. “The demand is going to continue. That trend away from houses, just with the prices of housing going up dramatically, more people are happy being downtown and living the condo lifestyle.”
 
RE/MAX Condos Plus said it expects demand for larger units – particularly those with two bedrooms or more – to increase, especially for two of Canada’s most active demographics moving up and down the property ladder.
 
“It’s two things really,” says Armand Gilks, a sales rep with Bosley Real Estate in Toronto. “One is people downsizing, and the other is people currently in condos and, as their need for more space as their families grow, many are opting for larger condos rather than low-rise housing.”
 
Immigration is also expected to boost condo demand in 2015. The RE/MAX report suggests Toronto requires more than 35,000 units annually to keep up with in-migration – meaning the 20,000 units currently being completed will lead to a shortage.
 
“I do see demand for larger units growing,” Gilks says, “and this is especially as the condo market matures.”

More: 

Is it too late to get into Hamilton’s hot housing market?

Investor returns will be down in 2015

 

 

Edmonton Detached Housing Prices Hit Historical High

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In November 2014 Edmonton single family detached average prices (green plot line) hit a new historical high while the rest of the big city metros took a break under their respective highs in a year that is seeing the total MLS sales across Canada project the biggest single sales year since the 2008-2009 plunge.

It remains interesting to note that the combined average price of a Vancouver, Calgary & Toronto condo is currently 26% more expensive than a median priced Montreal SFD and note also that in the spring of 2006, those 3-City average condos zoomed 58% in price (over $100,000) in just 3 months as the buy side of the market freaked out over the inversion of the 10yr less the 2yr spread as it went negative (Yield Curve). 

Mattress money has gushed into condos with no respect for fundamentals or plan for contingencies that may be required if Pit of Gloom II develops and one must write off capital gains and rely on employment earnings.

The average detached housing prices for Vancouver, Calgary, Edmonton, Toronto, Ottawa* and Montréal* as well as the average of Vancouver, Calgary and Toronto condo (apartment) prices (Left Axis). 

On the right axis is the MLS Annual Total Residential Sales across Canada; the most recent data point being a projection to year end. 

 

US Primary Residence Rents Turning Up Strongly

Rents up 6.5% in San Francisco, & 4.5% in numerous other cities. 

“Owners’ equivalent rent and rent of primary residence, which together account almost of a third of the CPI basket, are turning up strongly.

OER VP1

….read more HERE

 

3 Best Markets for Real Estate

Michael interviewed private and alternative investment expert Craig Burrows on his three favourite real estate markets and the three MUST ASK questions before considering any real estate investment.

CLICK BELOW to listen to the full interview.

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craigburrowsPresident & CEO of TriView Capital Ltd. – www.triviewcapital.com

CDN Real Estate: Detached Housing Prices in 6 Big Cities

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The chart above shows the average detached housing prices for Vancouver, Calgary, Edmonton, Toronto, Ottawa* and Montréal* as well as the average of Vancouver, Calgary and Toronto condo (apartment) prices (Left Axis). On the right axis is the MLS Annual Total Residential Sales across Canada; the most recent data point being a projection to year end.

In October 2014 Toronto single family detached average prices hit new historical highs on Absorption Rates that are the highest among Canada’s 6 biggest cities. Look also at the total MLS sales across Canada which are projecting the biggest single year since the 2008-2009 plunge. It’s been a banner year for sales.

Meanwhile Edmonton, Ottawa and Montreal prices ticked down in their flat channels along with Calgary prices that dropped with the energy patch selloff while Vancouver ticked up inside Bull Horse Mt.  

It remains interesting to note that the combined average price of a Vancouver, Calgary & Toronto condo is currently 25% more expensive than a median priced Montreal SFD and note also that in the spring of 2006, those 3-City average condos zoomed 58% in price (over $100,000) in just 3 months as the buy side of the market freaked out over the inversion of the 10yr less the 2yr spread as it went negative (Yield Curve). 

Mattress money has gushed into condos with no respect for fundamentals or plan for contingencies that may be required if Pit of Gloom II develops and one must write off capital gains and rely on employment earnings.

Canadian Housing Market, Bubble or Not?

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For Canadians, a topic of conversation that comes up often is the housing market. More specifically, whether or not Canada is in a bubble – and if so, will it burst?

It is no secret that Canada has some of the highest real estate prices in the world. Real estate prices were not even slightly slowed by the late 2000s global recession; in fact, they kept climbing higher and higher. All while Canada’s neighbour to the south experienced a dramatic drop and has only now recovered. Even more interesting, America’s

average household debt fell after the recession, but Canada’s continues to rise. This is a very concerning thought. 

Some attribute this to Canada having stronger fiscal health, a more stable banking system and the fruitful natural resources industry. Others say that Canada is set to experience a massive cooling down phase, one that would bring a drastic decline in housing prices.

Let’s narrow in on Canada’s West Coast oasis, Vancouver. Vancouver has a reputation for being one of the most expensive cities in the world in regards to housing prices and overall cost of living. In fact, when compared to other Canadian cities’ real estate, in some cases, Vancouver is more than double in cost per square foot. A million dollars will get you a cozy 1,500 square foot condo in Vancity. But the same million will get you 1,600 square feet in Toronto, 2,700 square feet in Montreal, and almost 3,800 square feet in Quebec City,

Outspoken economist, Doug Casey, seems to agree with the sentiment of Canada being overpriced, “ It’s a good time to leave Canada, since its property is quite overpriced by almost any standard – especially in Vancouver, BC.” Mr. Casey believes that Canada will suffer a similar fate as America, since Canadian banks are behaving in similar, generous fashion as their American counterparts did in the early 2000s. He also has dubbed Canada as “USA-lite.”

Will the old saying, “what goes up, must come down,” apply to Canada’s housing market or is this just the new reality of the Great White North? 

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